WHydrogen is considered a key element of the energy transition. Because it can be used for refueling and heating as well as as a storage or raw material for industrial applications, a real hype has arisen in recent years around the energy source, which is produced by splitting water using electrolysis. In many cases, announcements remained the same, but thanks to strong government support, the market ramp-up is slowly gaining momentum. Totalenergies (formerly Total) has now put a number on display that could give Europe’s hydrogen economy a powerful boost.
On Thursday, the French energy company announced a tender for the annual delivery of no less than 500,000 tons of “green” hydrogen, i.e. hydrogen produced from renewable electricity sources such as wind or solar parks. With these quantities, Totalenergies could significantly improve the carbon footprint of its six refineries and two biorefineries in Europe. These include the locations in Antwerp in Belgium, Zeeland in the Netherlands and Leuna near Leipzig as well as the French locations near Le Havre in Normandy, in Donges and in Feyzin. The two biorefineries are La Mède and Grandpuits in France.
Totalenergies’ European refinery park currently consumes around 500,000 tonnes of natural gas-based, so-called “grey” hydrogen, the production of which releases carbon dioxide. A company spokesman emphasized that the 500,000 tons of “green” hydrogen could completely replace it. Around 5 million tons of CO2 per year should be avoided. It is still uncertain whether the group can obtain the quantities of “green” hydrogen on the market. The price can only be guessed at at the moment. The tender is about “testing the market,” explains Totalenergies. Many scenarios are conceivable.
At least almost a quarter
In addition to our own projects already underway to produce “green” hydrogen produced using nuclear power, “we are turning to third-party manufacturers to supply us with the green hydrogen we need and to accelerate the decarbonization of our operations,” said CEO Patrick Pouyanné quoted in a corporate statement. “In this way, we hope to benefit from the most competitive solutions developed by various providers worldwide and offer them the opportunity to access medium and long-term contracts with Totalenergies.”
Totalenergies, one of the world’s leading oil and gas companies with a current market value of around 150 billion euros, has been trying to diversify and decarbonize its business model for several years. At 4 billion euros, at least a quarter of the investments recently went into low-emission energy sources. This includes the production of “green” hydrogen at the La Mède refinery site planned for 2024 in partnership with the energy group Engie.
In Leuna, Totalenergies has signed an agreement with the gas supplier VNG for the supply of “green” hydrogen, and at the sites near Le Havre and in Grandpuits the group is cooperating with the French industrial gases company Air Liquide, which is increasingly investing in electrolyzers. However, all of these projects only involve the production of just a few thousand or up to 20,000 tons of “green” hydrogen per year.
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